Rumours of UK hedge fund collapse

LONDON (AFX) - Leading shares turned lower in opening deals as vague talk a UK hedge fund has hit financial trouble dragged on financials and added to jitters ahead of key US retail data, dealers said.
At 9.13 am, the FTSE 100 (news) was down 12.1 points at 6,221.2, off an opening high of 6,240.7, mirroring the weaker wider market.
[...]
Back in London, financials led the broader market lower following rumours a UK hedge fund is facing financial difficulties.
'The market is being hit by talk that a UK hedge fund is about to go bust,' one London based trader noted.
'We've nothing concrete and don't know if it's commodities related or not.'

there should nothing to worry about as all hedge funds according to regulators and central bankers are hedged on all positions by way of arbitrage.
i.e. long one unit of market and short one unit of market and make billions of dollars by minute differenecs in price.

Hedge funds (95% of which are now officially known as 'stupid money' funded by stupid and complacent fools) are creating massive market inefficiencies that those of us who are paying diligent attention to the markets can exploit.

Hedge funds (95% of which are now officially known as 'stupid money' funded by stupid and complacent fools) are creating massive market inefficiencies that those of us who are paying diligent attention to the markets can exploit.